The Memphis appeal. [volume] (Memphis, Tenn.) 1886-1890, 1887-01-12
m RSsAGE

MESSAGE.
Gentlemen Of the Senate and House Of Rep.
rosentatlves;
In performance OF the duty imposed upon
the Governor by the constitution Of Tennos-
see, from time 10 time to give the General
Assembly Information of the state of the
government, and recommend for their con-
sidoration such msthods as he shall judge
sNpedient," / have tbs honor to transmit
tbo following message;
FINANCES OF THE STATE.
Tho biennial reports of the Comptroller
and Treasurer, exhaustive and critical, chow
in detail the receipts and expenditures Ter
the two years ending December 10, 1886.
From these reports 1t will DO seen that the
receipts for the two years.. from all sources,
aggregate the sum OF 1920, 76s 30, including
the item of s6b, 2l4 50. cash balance on hand
ing the same lime aggregate 3, 29l 800 -,
showing an excess Of dis bursements over ra-
ooiptB Of vi, 5S2 so. The balance Of s345,-
2l4 SO, that was In the treasury on Docom.
Der 20, 1884, included 1889, i73 so of new issue
Bank Of Tennessee certificates and old issue
Bank Of Tennessee money, which showed
the balance at that timo TO amount to only
fS06,74l o9 In actual available funds. The
actual receipts for tho past two years exceed
those OF the preceding two years by tho aum
Of 1881 800 s., exclusive of the balance on
hand at no boRinn ng OF each period The
disbursements of tho latter period oyoeed
those OF the 'ormer by 81 500, l6l 81, or at the
rate Of yI9o ,080 % q year.
These additional expenses for the past tive
years arc duo TO the payment Of interest on
Tho State debt, amounting to 81 ,0u ,46l
for tho two years named tho cancellation Of
TenneseOs money amounting to 1856 200, and
tho largo appropriations for hospitals for tho
insane In East and West Tennessee, and for
schools Tor tn deaf and dumb and blind (be-
yond current expenses OF the same), Logis-
tive expenses Of the extraordinary session.
capitol repairs,i etc., aggregating over $780,
O0l.
Tho incoming revenues for tho bien n al
period, together with tho balance that was
on hand December 20, 1884, were sufficient TO
meet all expenses up to, October /, 1886, not
withdrawing the very large amount Of back
interest duo after July, 1883, on bonds pre-
sonted for funding. On October LIST, how
ever, the Funding Board, under authority OF
the net of June 3, 1885. chapter 3, Of tho ex-
tTaordin airy session, made an arrangement
with tho First, Fourth and Commercial
Banks, all of Nashville, by which the State
was permitted TO- over check for such sums
as might be headed, the State agreeing 70
pay interest at tho ratio of 8 per cont, on the
tho amounts over checked, and the same ar
rangement will en- bio tho state TO over check
for suoh amount as may be necessary to meet
the January interest on the Stat debt, and
the came will stand as charge against the
State, bearing interest at tho rate of per
cent. until the incoming revenue, especially
the larse bulk Of revenue for the year 1886.
duo after February l, 1887, all pay and dis
charge IL.
But for the large extraordinary appropria-
tions by tho Gener al Assembly, there would
now BIO large balance in tho treasury, and
this balance would have been still many
thousands OF dollars greater but for the
large and previously unexpected amount Of
TorbStt issue an Treasurer's certificates or
the same, issued in lieu Of money, which
flowed back In taxes.
In the remarks appended to tho Treassror's
report 1t Il shown that In the 81 21l 300 gS OF
disbu semenk for the past two years arc n
oludsd many ito ms o extraordinary expense
that need not necessarily be incurred In
future years, the chief of which are tho FOL.
lowing Legislative oxpen,e, extra session,
S2O,67l 81; Court of Referees, sl7 sos d;
East Tennessee Hospital for tho Insane,
SlO5,O6S 1li Tennessee money and certificates
eanoelod and expense Of same, $5SS, 40 %;
$50 Is; Code Of Tennessee, So, 0O9 Is, and
Mineral Homo railr nd bonds redeemed,
Sib,6l3 IS, all aggregatinR SIS6, $50 IL.
There seems, therefore, to DO no doubt
that the present rate OF taxation Is sufh.
Gent 70 maet all the necessary expenses of
the State, including all interest on the debt,
mud accumulate ovory year large sum for
the eSuuguiShment Of the principal OF the
debt, espscially whom the obligations ow-
ing out of the TOrOett issue shall have been
settled, the last ouo-flth portion oC which
will he taken up In the year 1857, eKcept the
post notes, which will amount to S6l ,lal
annually tor the years 1887, 1888 and 1859.
twill he seen, by reference 10 tbs report
OF the Comptroller, thet tao amount Of war
rant' outstandiug on December ~, 1881, was
tue sum Of tll5,9N 50; that thore were is
saed from December 20, 1884 To December 10,
1880, tnClu i've, warrants to the amount of
3"5, 's2 q; and tina. the amount outstand-
ing ON becemb r ~, 1856, was sll0 li6 Is.
REVENUE AND TUE BONDED INDEBT-
EDNESS.
The property valuation in the State, which
is QUE main aource of revenue, has heen
since our Interstate strife, rs variable az
have been the modes Of getting at II. Hence.
no accura'o AMI vol defined estimate was
placed upon It during this period. rhe as
sessmenta during this time, which may be-
said 20 h W. heen almost purely arbitrary,
have, N amount, gone TO the two extremes,
from W 20 W cents PER annum on the $40,
the amount depending upon the question
az 60 WHIT thet inieres; on the debt was 10 bs
paid or not In keeping with this, II seems
that tax assessments, AZ barometer, would
rise or lall as the pressure Of the politico-
financial atmosphere wou d indicate; and
this pressure was increased or dimiaished
not so much by the demands OF the OCCASION
as ~ the peculiar local, personal or
yiduals composing each General Assem-.
bly,, as to the legality and amount a our
bogded indebtoduoss, and the best mode Of
its seulement. This sourc of irreguarity
moved, the way il now clear by which wa
oan, with some de rec of certainty, arrive AZ
the amount required TO carry on the state
govern mont, meet all just obligations With
out delay, and consider without passion or
prrjudic, the best mode of placing In the
Golfers Of the State this necessary amount.
The Forty bird General Assembly that
passed the at which established the terms
and indicated the mode Of settling the bond
cd indebted ess OF Tennessee, c,inctdeut
herewith passed revenue bill assessing
taxable property with four mills on tho doi-
lar, one Fourth OF which 10 DO devoted 10
co umon $ hoo purp ,,os, aud the remaining
three mills on the dollar Sot apart, with tho
revenue from other sources, " meet the cur
rent expenses Of toe State government in
Guiding, as q uart thereof the current inter-
tsL up0l our bonded indebtedness, and also
tho hack or past due coupon interest, ial iug
due after July /, 1913, on ali state bonds to
be funded undof the &C Of 1888.
About fvo-siXths Of the bonds liable to DO
funded under said act Of 1888 have besa
landed with all back interest thereon. Hence
1t is no pr ,blem, but simple sum Of easy